|
Introduction
Loyalty Management UK operates the Nectar Loyalty Programme, which is a
reward card scheme in operation at over 6,000 UK retail sites and used by over
15m shoppers. The company employs around 155 people directly – 30% of whom
are in an IT-related role – and a further 185 people at its outsourced contact
centres in Newcastle and India. The company has notched up a significant brand
presence through Nectar’s acceptance at 17 sponsors including such household
names as Sainsbury’s, BP and Debenhams. The company bounced into profits of
£9.2m in its second year of operation, and has a highly promising future.
Executive Summary
Loyalty Management UK (LMUK) has seen rapid growth since its creation in
September 2002, becoming operator of the UK’s largest loyalty card programme
just six months later. Launched at retail locations of its four sponsor companies,
the Nectar card is now also a prominent presence at 13 other companies,
including Threshers, ebookers and Magnet. A privately-owned company, LMUK
was founded by Keith Mills (now Chairman) who was responsible for the Air Miles
loyalty programme. After initial outlays in IT infrastructure, support and
marketing, it turned £8.4m losses in 2003 into £9.2m profit in its second year of
operation. Turnover of reward points distributed rose 6%, to £211m.
The Nectar concept is built on sustainability. By partnering with major
organisations and concluding multi-year agreements, LMUK’s key product has
high visibility and reach. At its launch collecters could earn points on 20% of
household spend; today it is 40% and the company aims to grow that to 70%.
|
Job Feeds
